Damona Doye Sarkeys Distinguished Professor and Regents Professor, Oklahoma State University Roger...
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Damona Doye Sarkeys Distinguished Professor and Regents Professor, Oklahoma State University Roger Sahs Extension Assistant, Oklahoma State University Larry Falconer Professor,Texas AgriLife Extension Service
Transcript of Damona Doye Sarkeys Distinguished Professor and Regents Professor, Oklahoma State University Roger...
Damona DoyeSarkeys Distinguished Professor and Regents Professor, Oklahoma State University
Roger SahsExtension Assistant, Oklahoma State University
Larry FalconerProfessor,Texas AgriLife Extension Service
Minimum temperature: -31°F, Nowata, 2/10/11 Number of days with temperature 100°F or higher:
101 days, Grandfield Warmest summer(June-August): 86.9°F, Statewide
average 24-hour snowfall: 27 inches, Spavinaw, 11 PM , 2/8/11
to 11 PM 2/9/11 Wind gust: 151 mph, El Reno, 5/24/11 Hail stone diameter: 6.0 inches, 2 miles north of Gotebo,
5/23/11 Lowest annual total precipitation: 6.2 inches, Hooker
2011producer meetings◦ Drought management strategies◦ Decision support tools
Evaluation of drought impact Extension educator training
Reinvesting in the beef industry Lender workshops 2012 producer meetings
Numerous meetings around the state…. Feeding/hay strategies Pasture management Hay issues: nitrates, prussic acid and
aflatoxin Livestock water quality Culling strategies Potential economic outcomes associated
with choices, including tax repercussions
IFMAPS (Intensive Financial Management and Planning Support)
Beefextension.com, Cow/calf, Calculators◦ Early weaning decision aid◦ Repurchase decision tool◦ Sell cows now or later◦ Cow bid price estimate calculator◦ Enterprise budget software
Factors to consider: Cost per day if I keep the cow Current sale value of the cow How long will the difficult environmental
conditions last Cost of replacement in the future Time value of money Tax issues
Cost per Day to Maintain Cow ($)
Days till repurchase
$2.50 $3.00 $3.50
Jan 2012 150 $395 $470 $544
May 2012 270 $716 $851 $987
Aug. 2012 370 $985 $1,170 $1,355
Assumes 5% time value of money
Example: Your maintenance cost per day is $3 and you think May 1 is a reasonable repurchase target date. If you think the sell–buyback spread will be less than $851, you should sell and buyback.
Commodity Loss Estimate
Crops (grains, hay, soybeans, cotton)
$904,954,000
Specialty crops $ 11,156,000
Horticultural crops $ 81,836,000
Total crops $997,947,000
Acreage loss of approx. 100% Corn, soybeans, grain sorghum, alfalfa, other hay
Reduced calf value $135,000,000
Lost pasture production $153,200,000
Reduced winter stocker/forage $88,000,000
Additional feed costs $291,300,000
Total livestock loss $667,600,000
Estimated total head sold 250,000 – 300,000
Eastern and Western OK Market outlook Reinvesting in the beef herd
◦ Rebuild slowly using stockers◦ Rebuild fast buying cow/calf pairs◦ Rebuild with leased cows
Risk management tools Farm transition program options
6 sessions around the state addressing: Market outlook Reinvesting in the beef industry Risk management tools Farm Service Agency guaranteed loan
options Bank examiner perspective
Market outlook Reinvesting in the beef industry Tax choices Pasture recovery management
Net Present Value of the Investment
Cow Operating Cost per Year
Cow/calf Purchase Price
$550 $600 $650
$1,750 $688 $332 ($19)
$2,000 $428 $67 ($284)
$2,250 $152 ($199) ($550)
www.beefextension.com under Cow-calf, Calculators, Cow Bid Price Estimate Calculator
SAEA symposia may lead to Choices article◦ Choicesmagazine.org
Work on NCFMEC livestock leasing publication
Work on additional software tools◦ Forage
More producer meetings…◦ Livestock leasing◦ Quicken for farm financial records◦ Farm transitions
